How to Get Approved for A Higher Mortgage Amount

Picture this: You’ve found your dream home, but when you apply for a mortgage, the mortgage lender doesn’t approve you for the amount you need. Frustrating, right? Getting approved for a higher mortgage isn’t just about how much you earn—it’s about how well you manage your credit, debt, and financial profile.

Lenders consider factors like your credit score, debt-to-income ratio, and income stability when determining your borrowing limit. The good news? With the right strategies, you can strengthen your financial standing and increase your approval odds.

In this guide, we’ll walk you through actionable steps to increase your mortgage preapproval, from improving your credit to choosing the right lender. Plus, with tools like Dovly’s credit optimization service and mortgage engine, you can fast-track the process and unlock better home loan options. Let’s dive in!

Strategies to Get Approved for a Higher Mortgage

Securing a higher mortgage requires careful planning and financial discipline. Below are actionable steps to help you improve your mortgage eligibility.

Use a Mortgage Calculator to Set Realistic Expectations

Before you start the mortgage process, it’s essential to have a clear understanding of how much home you can afford. A mortgage calculator can help you estimate your monthly payment, ensuring you don’t overextend your budget or face surprises down the road.

Lenders assess your financial profile to determine how much they’re willing to lend, but having a realistic estimate beforehand allows you to:

✅ Set a Target Price Range – Avoid falling in love with homes outside your financial reach.
✅ Plan for Upfront & Ongoing Costs – A mortgage isn’t just about principal and interest. Additional expenses impact affordability.
✅ Strengthen Your Mortgage Application – If your estimated payment seems too high, you can proactively lower debts, increase savings, or adjust your homebuying strategy.

When using a mortgage calculator, consider these key factors:

• Principal & Interest – The core of your mortgage payment.
• Property Taxes – Varies by location and adds to your monthly obligation.
• Homeowners Insurance – Protects your investment and is often required by lenders.
• Private Mortgage Insurance (PMI) – Required if your down payment is below 20%.
• HOA Fees – If applicable, these can significantly impact affordability.

By taking the time to calculate affordability before seeking approval, you position yourself as a stronger buyer and avoid unnecessary hurdles in the homebuying process.

Get Pre-approved to Understand Your Borrowing Power

A mortgage pre-approval is one of the most valuable steps you can take before house hunting. It gives you a clear picture of how much a lender is willing to offer based on your financial profile. More importantly, it helps you understand what’s needed to qualify for a higher loan amount.

By getting a mortgage pre-approval, you’re not just finding out how much you can afford—you’re learning what steps you can take to qualify for more. If your initial mortgage pre-approval amount is lower than expected, use it as a roadmap to strengthen your financial position before officially applying for a mortgage.

Improve Your Credit Score to Increase Your Chances

Your credit score is one of the most influential factors in determining mortgage amounts so improving your score could increase your mortgage pre-approval amount. You should work to improve your score before mortgage pre-approval, not just before closing. Here’s how to boost it:

✅ Pay bills on time – A strong payment history shows lenders you’re responsible with credit.

✅ Lower your credit utilization – Keep credit card balances below 30% of your available limit.

✅ Avoid new accounts – Opening new lines of credit before applying for a mortgage can temporarily lower your score.

✅ Use a credit optimization service – Dovly can help you identify and dispute inaccurate negative items on your credit report.

✅ Keep old accounts open – The length of your credit history impacts your score, so avoid closing long-standing accounts.

✅ Check for errors – Review your credit report for errors and dispute any inaccuracies that may be lowering your score.

Lower Your Debt-to-Income Ratio to Qualify for More

Lenders use your debt-to-income (DTI) ratio to assess your ability to manage monthly mortgage payments during the mortgage pre-approval process. A lower DTI signals to lenders that you have enough financial flexibility to take on a mortgage with your other monthly debt payments, which can help you qualify for a larger loan amount.

To lower your DTI, start by paying off high-interest debts first. Reducing these balances frees up more of your income for a mortgage payment and improves your overall financial profile.

Consider debt consolidation if you have multiple high-interest debts. Combining them into a single loan with monthly payments and a lower interest rate can make debts more manageable and help you pay off debt faster.

Making extra payments on existing debts, especially credit cards and personal loans, can significantly lower your balances over time. Even small additional payments each month can make a difference in reducing your DTI.

Finally, hold off on large purchases that require financing. Big-ticket items, such as furniture, appliances, or a new car, can increase your debt load and negatively impact your mortgage eligibility. By keeping your debt under control, you’ll improve your chances to increase your mortgage pre-approval amount.

Increase Your Income to Showcase Affordability

Boosting your gross monthly income can improve your debt-to-income (DTI) ratio and show lenders that you can afford a higher mortgage. This can increase your mortgage pre-approval amounts too! Consider these strategies:

✅ Pick up a side gig – Freelancing, consulting, or part-time work can supplement your primary income. Lenders may consider steady side income if it’s documented over time.

✅ Negotiate a raise – If you’ve been performing well, consider requesting a salary increase. A higher income strengthens your loan eligibility and financial stability.

✅ Explore passive income – Rental properties, dividends, or other investments can increase your financial standing and provide stability lenders look for in mortgage applicants.

✅ Advance your career – Seeking better-paying job opportunities or pursuing upskilling and certifications can improve your earning potential, positively impacting your mortgage application.

By increasing your income, you enhance your mortgage eligibility and set yourself up for a more comfortable homeownership journey.

Explore Options to Ensure Best Bang-for-Your-Buck

Choosing the right mortgage product can significantly impact how much you qualify for and what you’ll pay over time. Understanding your options can help you secure a loan that fits your budget while maximizing your purchasing power.

Start by exploring different loan types. FHA, VA, and conventional loans each have unique qualification requirements and benefits. FHA loans are great for those with poor scores and smaller down payments, while VA loans offer exclusive perks for eligible military members. Conventional loans may require higher scores but often come with competitive rates.

Look into first-time homebuyer programs, which can provide more favorable loan terms, lower interest rates, and reduced down payment requirements. Many state and local programs offer assistance to make homeownership more accessible.

Finally, work with a mortgage expert to ensure you’re selecting the best loan for your financial situation. A knowledgeable professional can guide you through your options, helping you find the most cost-effective mortgage while maximizing your borrowing potential.

Choose the Right Lender for Maximum Approval

Not all lenders follow the same approval criteria, so finding the right one can make a big difference. Before choosing a lender, ask yourself:

✅ Do they work with borrowers who have poor scores or unique financial situations? Some lenders offer manual underwriting, which considers more than just numbers.

✅ Do they offer first-time homebuyer incentives? Programs with down payment assistance, lower interest rates, or better loan terms can help you qualify for more.

✅ What are their underwriting standards? Some lenders allow higher debt-to-income ratios, making it easier to qualify for a larger loan.

✅ Do they specialize in the type of loan I need? Whether it’s an FHA, VA, USDA, or jumbo loan, working with a lender experienced in your loan type can streamline approval.

✅ Is their customer service responsive? A lender with strong customer support can make your mortgage process smoother and less stressful.

Comparing lenders and asking the right questions can help you secure a higher mortgage and better loan terms. While you can get pre-approved by multiple lenders to compare offers, keep in mind that mortgage preapproval amounts may vary. Just because one lender approves you for a certain amount doesn’t guarantee another will do the same. Once you find the best offer, it’s best to stick with that lender throughout the entire mortgage process to ensure a smooth experience.

Key Factors That Impact Mortgage Approval

Credit Score and Credit History

Lenders use your credit score to determine your reliability as a borrower. Higher credit scores lead to better loan terms, including lower interest rates and higher mortgage pre-approval amounts. If your credit score needs improvement, services like Dovly AI can help by identifying and disputing inaccurate negative items on your report.

Debt-to-Income Ratio (DTI)

Your DTI ratio measures how much of your income goes toward paying debts. A lower DTI ratio signals to lenders that you can handle additional monthly mortgage payments. To lower your DTI, focus on paying off existing debts before going through mortgage pre-approval.

Income and Employment Stability

Lenders want to see steady, reliable income. If you’re self-employed or have fluctuating earnings, consider providing additional financial documentation, such as tax returns and profit-and-loss statements, to strengthen your application. Increasing your gross monthly income through side jobs or negotiating a raise can also increase your mortgage pre-approval amounts.

Assets & Savings

Lenders consider your savings and investments when determining mortgage eligibility. A substantial savings account can demonstrate financial stability and may even help qualify you for better loan terms and increase your mortgage pre-approval amounts.

Down Payment Size

A larger down payment reduces the amount you need to borrow, which can make approval easier. Saving for a large down payment also helps you avoid private mortgage insurance (PMI), reducing your overall monthly costs.

Conclusion

Securing a higher mortgage approval is all about preparation. Strengthening your credit, reducing debts, increasing your income, and working with the right mortgage lender can make a big difference. Tools like Dovly’s credit optimization service can help you achieve a better credit score, which can lead to better mortgage rates and a larger loan approval. Plus, when you’re ready, we’ve partnered with Mortgage Research Center to help connect you with trusted lenders and mortgage solutions tailored to your needs.

Take control of your credit and mortgage approval today! Sign up for Dovly AI to boost your credit and use our mortgage engine to find the best home loan offers in minutes.